U.K. Defense Challenge: Move From 'Fantasy Budgets' To Firm Foundation.

In his first major speech since becoming U.K. Secretary of State for Defense, Philip Hammond addressed hot policy issues, including moving the budget toward ambitious programs to renew the forces for a strong future.

Hammond's priority is a successful conclusion of the combat mission in Afghanistan, he said. The goal is not a "perfect" Afghanistan, but one able to maintain its own security and prevent the return of international terror groups.

Resetting the budget would not be easy nor pain-free, the Conservative party politician told a sold out audience at the Royal United Services Institute in London recently. Hammond succeeded Liam Fox--who resigned amid a …